What this ETF is trying to do

The First Trust Multi-Strategy Alternative ETF (LALT) is designed to provide a diversified approach by investing in other funds. Instead of just buying stocks or bonds, it holds a mix of "alternative" strategies. Based on its holdings, it focuses on things like managed futures, long/short equity, and absolute return strategies.

What the numbers show

As of October 9, 2026, the share price is $24.94.

There are two ways to look at the returns: price return (how much the share price changed) and total return (which includes the share price change plus the cash distributions paid out).

• Year-to-Date (YTD): The price return is 9.43%, while the total return is 12.45%.

• One Year: The price return is 9.08%, and the total return is 13.69%.

• Three Year: The price return is 25.75%, and the total return is 37.30%.

To put the one-year price return in perspective, if you had invested $10,000 in this ETF roughly one year ago (when the estimated price was $22.86), the value of those shares alone would be worth approximately $10,908 today.

Income and distribution explanation

LALT pays out cash to investors, usually every quarter. Over the last 12 months, it has made 4 payouts. The distribution yield is approximately 3.94%.

It is important for beginners to know that a high distribution yield alone can be misleading. Yield tells you how much cash you are getting relative to the price, but it does not guarantee that your original investment is growing or staying safe.

NAV erosion explanation

"NAV erosion" happens when the actual value of the fund's underlying assets drops over time, often causing the share price to fall.

For LALT, the erosion-risk score is 100, and the label states "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag. This means the fund has not shown the patterns typically associated with NAV erosion.

Top Holdings

As of October 4, 2026, the fund holds 7 assets. The largest include:

• First Trust Managed Future Strategy ETF: 21.78%

• First Trust Long/Short Equity ETF: 21.73%

• First Trust Alt Abs Ret Strat ETF: 21.17%

• First Trust Low Duration Oppos ETF: 9.96%

• Franklin Systematic Style Premia ETF: 9.58%

Pros

• Positive price and total returns over the short and medium term.

• A "good" erosion-risk rating.

• Provides regular quarterly cash distributions.

Cons

• The total return is higher than the price return, meaning a significant part of the gain comes from distributions rather than just the share price increasing.

Beginner takeaway

LALT is a "fund of funds" that uses alternative strategies to seek returns. It has shown growth in both share price and total return over the last three years and currently shows no signs of NAV erosion.